Regulatory Notification and Business Curtailment

What this video covers

• Why the Financial Industry Regulatory Authority (FINRA) 150% early-warning notification applies only to carrying and clearing members, not pure introducing firms
• The exact 24-hour notification requirement when net capital falls below 150% of the dollar minimum for carrying and clearing firms
• How the two-part timeline works: the 5-consecutive-business-day knowledge gate plus the 15-consecutive-business-day continuation rule that triggers the business expansion restriction
• What "expanding its business" specifically prohibits (new offices, new representatives, new products, increased accounts, increased volume) versus what the firm may still do
• Why business curtailment is more aggressive than the expansion restriction, and what specific limits FINRA can impose (customer accounts, transaction volume, proprietary inventory, capital commitments)
• The exact descending ladder for carrying and clearing firms: FINRA at 150%, Securities and Exchange Commission (SEC) at 120% with 24-hour notice, SEC at 100% with same-day notice and immediate business cessation
• How to spot the introducing-firm exam trap when a scenario starts at 120% with no prior 150% trigger